Ericsson Sues Micromax For 100 Crores Over Patent Violation

Micromax, the company which recently got into news with its low budget super smartphones like the Canvas 2 A110 and Canvas HD A116 is again revolving around news flash where it reportedly got sued but the Swedish telecom giant Ericsson.

The Swedish Telecom giant Ericsson has moved the Delhi High Court where its is claiming about Rs 100 crore in damages, saying it was taking legal action after three years of negotiations failed to yield a licence agreement on 'standards-essential' patents.

The two companies are said to settle down their patent deal on and before April 9, 2013 until which Micromax is bound to pay royalty to Ericsson on every handset it sells.

Micromax is suppose to pay between 1.25-2% of the sale price of handsets and deposit the amount with the court as ordered which will stay with the court until the case is finally settled.

Apple and Samsung were battling over smartphones patent rights, HTC and Nokia did the same and now its turn for Micromax to battle its grounds.

As reported by the Economic Times, the interim agreement also allows the executives of Ericsson to be present when the consignment arrives and only after making sure that the consignment doesn't break any patent rules, the shipment can be handed over to the Micromax officials.

“Micromax is committed to negotiating a FRAND (fair, reasonable, and non-discriminatory terms) licence with Ericsson as has Ericsson undertaken to providing a FRAND licence to Micromax. Since the matter is pending before the Honorable court it would be incorrect for Micromax to make any further statements on the matter,” Micromax informs.